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Apo VS LBP
Apo VS LBP
Apo VS LBP
I"O P#ANTATION$ INC%$ Petitioners, (%R% No% )*+),Present: CORONA, C.J., CARPIO, CARPIO MORALES, VELASCO, JR., NACHURA, LEONAR O- E CAS!RO, "RION, PERAL!A, "ERSAMIN, EL CAS!ILLO, A"A , VILLARAMA, JR., PERE#, MEN O#A, $nd SERENO, JJ.
versus -
-e reso&ve t.e petitioners/ motion for reconsideration $ddressin' our Reso&ution o0 e(e%)er 1, +,,2 3.ose dispositive portion dire(ts:
-HERE4ORE, t.e Court denies t.e petitioners/ se(ond %otion 0or re(onsider$tion 53it. respe(t to t.e deni$& o0 t.e $3$rd o0 &e'$& interest $nd $ttorne6/s 0ees7, $nd reiter$tes t.e de(ision d$ted 4e)ru$r6 8, +,,9 $nd t.e reso&ution d$ted e(e%)er *2, +,,9 o0 t.e !.ird ivision.
4or $ 0u&&er $nd (&e$rer present$tion $nd $ppre(i$tion o0 t.is Reso&ution, 3e .$r: )$(: to t.e roots o0 t.is ($se. Factual Antece ents Apo 4ruits Corpor$tion 5AFC7 $nd Hi;o P&$nt$tion, In(. 5HPI7, to'et.er $&so re0erred to $s petitioners, 3ere re'istered o3ners o0 v$st tr$(:s o0 &$nd< A4C o3ned 81,.=1>= .e(t$res, 3.i&e HPI o3ned >,?.?=,> .e(t$res. On O(to)er *+, *22?, t.e6 vo&unt$ri&6 o00ered to se&& t.ese &$nd.o&din's to t.e 'overn%ent via Vo&unt$r6 O00er to Se&& $pp&i($tions 0i&ed 3it. t.e ep$rt%ent o0 A'r$ri$n Re0or% 5DAR7. On O(to)er *8, *228, A4C $nd HPI re(eived sep$r$te noti(es o0 &$nd $(@uisition $nd v$&u$tion o0 t.eir properties 0ro% t.e AR/s Provin(i$& A'r$ri$n Re0or% O00i(er 5PARO7. At t.e $ssessed v$&u$tion o0 P*8?,1>1.19 per .e(t$re, A4C/s &$nd 3$s v$&ued $t P>8,2,,,2+?.>>, 3.i&e HPI/s propert6 3$s v$&ued $t P*81,19>,*9>.*1. HPI $nd A4C re;e(ted t.ese v$&u$tions 0or )ein' ver6 &o3. In its 0o&&o3 t.rou'. $(tion, t.e AR re@uested t.e L$nd "$n: o0 t.e P.i&ippines 5LBP7 to deposit P+8,1,2,?12.>8 in A4C/s )$n: $((ount $nd P1?,1>*,9,8.98 in HPI/s )$n: $((ount, 3.i(. $%ounts t.e petitioners t.en 3it.dre3. The tit es over AFC and HPI!s properties "ere thereafter cance ed, and ne" ones "ere iss#ed on Decem$er %, &%%' in the name of the Rep#$ ic of the Phi ippines. On 4e)ru$r6 *1, *229, A4C $nd HPI 0i&ed sep$r$te petitions 0or deter%in$tion o0 ;ust (o%pens$tion 3it. t.e AR Ad;udi($tion "o$rd 5 DARAB7. -.en t.e ARA" 0$i&ed to $(t on t.ese petitions 0or %ore t.$n t.ree 6e$rs, A4C $nd HPI 0i&ed sep$r$te (o%p&$ints 0or deter%in$tion $nd p$6%ent o0 ;ust
(o%pens$tion 3it. t.e Re'ion$& !ri$& Court 5RTC7 o0 !$'u% Cit6, $(tin' $s $ Spe(i$& A'r$ri$n Court. !.ese (o%p&$ints 3ere su)se@uent&6 (onso&id$ted. On Septe%)er +?, +,,*, t.e R!C reso&ved t.e (onso&id$ted ($ses, 0iAin' t.e ;ust (o%pens$tion 0or t.e petitioners/ *,==>.8,+9 .e(t$res o0 B*C &$nd $t P*,=>=,*92,,,,.,,, 3it. interest on t.is $%ount $t t.e prev$i&in' %$r:et interest r$tes, (o%puted 0ro% t.e t$:in' o0 t.e properties on e(e%)er 2, *228 unti& 0u&&6 p$id, %inus t.e $%ounts t.e petitioners $&re$d6 re(eived under t.e initi$& v$&u$tion. !.e R!C $&so $3$rded $ttorne6/s 0ees. L"P %oved 0or t.e re(onsider$tion o0 t.e de(ision. !.e R!C, in its order o0 e(e%)er ?, +,,*, %odi0ied its ru&in' $nd fi.e the interest at the rate of )12 per annum from the time the complaint 3as file until finalit4 of the ecision% !.e !.ird ivision o0 t.is Court, in its e(ision o0 4e)ru$r6 8, +,,9, $00ir%ed t.is R!C de(ision. On %otion 0or re(onsider$tion, t.e !.ird ivision issued its Reso&ution o0 e(e%)er *2, +,,9, %odi06in' its 4e)ru$r6 8, +,,9 e(ision )6 eletin5 the )12 interest due on t.e )$&$n(e o0 t.e $3$rded ;ust (o%pens$tion. The Third Division (#stified the de etion $) the findin* that the LBP did not de a) the pa)ment of (#st compensation as it had deposited the pertinent amo#nts d#e to AFC and HPI "ithin fo#rteen months after the) fi ed their comp aints for (#st compensation "ith the RTC. !.e Court $&so (onsidered t.$t A4C .$d $&re$d6 (o&&e(ted $pproAi%$te&6 P*12.8 %i&&ion, 3.i&e HPI .$d $&re$d6 (o&&e(ted $pproAi%$te&6 P+8+ %i&&ion 0ro% t.e L"P. !.e !.ird ivision $&so de&eted t.e $3$rd o0 $ttorne6/s 0ees. A&& p$rties %oved 0or t.e re(onsider$tion o0 t.e %odi0ied ru&in'. !.e Court uni0or%&6 denied $&& t.e %otions in its Apri& =,, +,,> Reso&ution. Entr6 o0 Jud'%ent 0o&&o3ed on M$6 *8, +,,>. Not3it.st$ndin' t.e Entr6 o0 Jud'%ent, A4C $nd HPI 0i&ed t.e 0o&&o3in' %otions on M$6 +>, +,,>: 5*7 Motion 0or Le$ve to 4i&e $nd Ad%it Se(ond Motion 0or Re(onsider$tion< 5+7 Se(ond Motion 0or Re(onsider$tion, 3it. respe(t to t.e deni$& o0 t.e $3$rd o0 &e'$& interest $nd $ttorne6/s 0ees< $nd 5=7 Motion to Re0er t.e Se(ond Motion 0or Re(onsider$tion to t.e Honor$)&e Court +n Banc.
!.e !.ird ivision 0ound t.e %otion to $d%it t.e Se(ond Motion 0or Re(onsider$tion $nd t.e %otion to re0er t.is se(ond %otion to t.e Court +n Banc %eritorious, $nd $((ordin'&6 re0erred t.e ($se to t.e Court +n Banc. On Septe%)er >, +,,2, t.e Court +n Banc $((epted t.e re0err$&. The Court En Banc Resolution On e(e%)er 1, +,,2, t.e Court +n Banc, )6 $ %$;orit6 vote, denied t.e petitioners/ se(ond %otion 0or re(onsider$tion )$sed on t3o (onsider$tions. First, t.e 'r$nt o0 t.e se(ond %otion 0or re(onsider$tion runs (ounter to t.e i%%ut$)i&it6 o0 0in$& de(isions. Moreover, t.e Court s$3 no re$son to re(o'niDe t.e ($se $s $n eA(eption to t.e i%%ut$)i&it6 prin(ip&e $s t.e petitioners/ priv$te (&$i% 0or t.e p$6%ent o0 interest does not @u$&i06 $s eit.er $ su)st$nti$& or tr$ns(endent$& %$tter or $n issue o0 p$r$%ount pu)&i( interest. ,econd, on t.e %erits, t.e petitioners $re not entit&ed to re(over interest on t.e ;ust (o%pens$tion $nd $ttorne6/s 0ees )e($use t.e6 ($used t.e de&$6 in t.e p$6%ent o0 t.e ;ust (o%pens$tion due t.e%< t.e6 erroneous&6 0i&ed t.eir (o%p&$ints 3it. t.e ARA" 3.en t.e6 s.ou&d .$ve dire(t&6 0i&ed t.ese 3it. t.e R!C $(tin' $s $n $'r$ri$n (ourt. 4urt.er%ore, t.e Court 0ound it si'ni0i($nt t.$t t.e L"P deposited t.e pertinent $%ounts in t.e petitioners/ 0$vor 3it.in 0ourteen %ont.s $0ter t.e petitions 3ere 0i&ed 3it. t.e R!C. Under t.ese (ir(u%st$n(es, t.e Court 0ound no unre$son$)&e de&$6 on t.e p$rt o0 L"P to 3$rr$nt t.e $3$rd o0 *+E interest. The Chico/Na6ario &issent Justi(e Minit$ V. C.i(o-N$D$rio,B+C the ponente of the ori5inal &ecember ),$ 1778 Resolution 9 eletin5 the )12 interest:, dissented 0ro% t.e Court +n Banc/s e(e%)er 1, +,,2 Reso&ution. On t.e issue o0 i%%ut$)i&it6 o0 ;ud'%ent, Justi(e C.i(o-N$D$rio pointed out t.$t under eAtr$ordin$r6 (ir(u%st$n(es, t.is Court .$s re($&&ed entries o0 ;ud'%ent on t.e 'round o0 su)st$nti$& ;usti(e. Fiven t.e spe(i$& (ir(u%st$n(es invo&ved in
t.e present ($se, t.e Court +n Banc s.ou&d .$ve t$:en $ se(ond .$rd &oo: $t t.e petitioners/ positions in t.eir se(ond %otion 0or re(onsider$tion, $nd $(ted to (orre(t t.e (&e$r&6 erroneous e(e%)er *2, +,,9 Reso&ution. Spe(i0i($&&6, Justi(e C.i(o-N$D$rio e%p.$siDed t.e o)&i'$tion o0 t.e St$te, in t.e eAer(ise o0 its in.erent po3er o0 e%inent do%$in, to p$6 ;ust (o%pens$tion to t.e o3ner o0 t.e eApropri$ted propert6. !o )e ;ust, t.e (o%pens$tion %ust not on&6 )e t.e (orre(t $%ount to )e p$id< it %ust $&so )e p$id 3it.in $ re$son$)&e ti%e 0ro% t.e ti%e t.e &$nd is t$:en 0ro% t.e o3ner. I0 not, t.e St$te %ust p$6 t.e &$ndo3ner interest, )6 3$6 o0 d$%$'es, 0ro% t.e ti%e t.e propert6 3$s t$:en unti& ;ust (o%pens$tion is 0u&&6 p$id. !.is interest, dee%ed $ p$rt o0 ;ust (o%pens$tion due, .$s )een est$)&is.ed )6 prev$i&in' ;urispruden(e to )e *+E per $nnu%. On t.ese pre%ises, Justi(e N$D$rio pointed out t.$t t.e 'overn%ent deprived t.e petitioners o0 t.eir propert6 on e(e%)er 2, *228, $nd p$id t.e )$&$n(e o0 t.e ;ust (o%pens$tion due t.e% on&6 on M$6 2, +,,>. !.e de&$6 o0 $&%ost t3e&ve 6e$rs e$rned t.e petitioners interest in t.e tot$& $%ount o0 P*,==*,*+1,++=.,?. espite t.is 0indin', Justi(e C.i(o-N$D$rio did not see it 0it to de(&$re t.e (o%puted interest to )e tot$&&6 due< s.e 0ound it un(ons(ion$)&e to $pp&6 t.e 0u&& 0or(e o0 t.e &$3 on t.e L"P )e($use o0 t.e %$'nitude o0 t.e $%ount due. She thus re uce the a3ar e interest to P+77$777$777%77$ or appro.imatel4 ;72 of the compute interest% The Present Motion for Reconsi eration In t.eir %otion to re(onsider t.e Court +n Banc/s e(e%)er 1, +,,2 Reso&ution 5the present -otion for Reconsideration7, t.e petitioners prin(ip$&&6 $r'ue t.$t: 5$7 t.e prin(ip&e o0 i%%ut$)i&it6 o0 ;ud'%ent does not $pp&6 sin(e t.e Entr6 o0 Jud'%ent 3$s issued even )e0ore t.e &$pse o0 0i0teen d$6s 0ro% t.e p$rties/ re(eipt o0 t.e Apri& =,, +,,> Reso&ution $nd t.e petitioners ti%e&6 0i&ed t.eir se(ond %otion 0or re(onsider$tion 3it.in 0i0teen d$6s 0ro% t.eir re(eipt o0 t.is reso&ution< 5)7 t.e Apri& =,, +,,> Reso&ution ($nnot )e (onsidered i%%ut$)&e (onsiderin' t.e spe(i$& $nd (o%pe&&in' (ir(u%st$n(es $ttend$nt to t.e present ($se
3.i(. 0$&& 3it.in t.e eA(eptions to t.e prin(ip&e o0 i%%ut$)i&it6 o0 ;ud'%ents< 5(7 t.e &e'$& interest due is $t *+E per $nnu%, re(:oned 0ro% t.e ti%e o0 t.e t$:in' o0 t.e su);e(t properties $nd t.is r$te is not su);e(t to redu(tion. !.e po3er o0 t.e (ourts to e@uit$)&6 redu(e interest r$tes $pp&ies so&e&6 to &i@uid$ted d$%$'es under $ (ontr$(t $nd not to interest set )6 t.e Honor$)&e Court itse&0 $s due $nd o3in' in ;ust (o%pens$tion ($ses< $nd 5d7 t.e Honor$)&e Court/s 0e$rs t.$t t.e interest p$6%ents due to t.e petitioners 3i&& produ(e %ore .$r% t.$n 'ood to t.e s6ste% o0 $'r$ri$n re0or% $re %isp&$(ed $nd $re )$sed %ere&6 on (on;e(tures.
The Comment of the #an Ban< of the Philippines !.e L"P (o%%ented on t.e petitioners/ %otion 0or re(onsider$tion on Apri& +>, +,*,. It %$int$ined t.$t: 5$7 t.e do(trine o0 i%%ut$)i&it6 o0 t.e de(isions o0 t.e Supre%e Court (&e$r&6 $pp&ies to t.e present ($se< 5)7 t.e L"P is not 'ui&t6 o0 undue de&$6 in t.e p$6%ent o0 ;ust (o%pens$tion $s t.e petitioners 3ere pro%pt&6 p$id on(e t.e Court .$d deter%ined t.e 0in$& v$&ue o0 t.e properties eApropri$ted< 5(7 t.e Supre%e Court ru&in's invo:ed )6 t.e petitioners $re in$pp&i($)&e to t.e present ($se< 5d7 sin(e t.e o)&i'$tion to p$6 ;ust (o%pens$tion is not $ 0or)e$r$n(e o0 %one6, interest s.ou&d (o%%en(e on&6 $0ter t.e $%ount due )e(o%es $s(ert$in$)&e or &i@uid$ted, $nd t.e *+E interest per $nnu% $pp&ies on&6 to t.e &i@uid$ted $%ount, 0ro% t.e d$te o0 0in$&it6 o0 ;ud'%ent< 5e7 t.e i%position o0 *+E interest on t.e )$&$n(e o0 P29*,1,2,>=*.8> is un3$rr$nted )e($use t.ere 3$s no un;usti0ied re0us$& )6 L"P to p$6 ;ust (o%pens$tion, $nd no (ontr$(tu$& )re$(. is invo&ved< 507 t.e de&etion o0 t.e $ttorne6/s 0ees e@uiv$&ent to *,E o0 t.e $%ount 0in$&&6 $3$rded $s ;ust (o%pens$tion is proper< 5'7 t.is ($se does not invo&ve $ vio&$tion o0 su)st$nti$& ;usti(e to ;usti06 t.e $&ter$tion o0 t.e i%%ut$)&e reso&ution d$ted e(e%)er *2, +,,9 t.$t de&eted t.e $3$rd o0 interest $nd $ttorne6/s 0ees. The Court=s Rulin5 >e fin the petitioners= ar5uments meritorious an (RANT the present motion for reconsi eration% Just compensation a Basic Limitation on the States accor in5l4
Power of Eminent Domain At t.e .e$rt o0 t.e present (ontrovers6 is t.e !.ird ivision/s e(e%)er *2, +,,9 Reso&ution 3.i(. .e&d t.$t t.e petitioners $re not entit&ed to *+E interest on t.e )$&$n(e o0 t.e ;ust (o%pens$tion )e&$ted&6 p$id )6 t.e L"P. In t.e present&6 $ss$i&ed e(e%)er 1, +,,2 Reso&ution, 3e $00ir%ed t.e e(e%)er *2, +,,9 Reso&ution/s 0indin's t.$t: 5$7 t.e L"P deposited Gpertinent $%ountsH in 0$vor o0 t.e petitioners 3it.in 0ourteen %ont.s $0ter t.e6 0i&ed t.eir (o%p&$int 0or deter%in$tion o0 ;ust (o%pens$tion< $nd 5)7 t.e L"P .$d $&re$d6 p$id t.e petitioners P1**,982,*8>.=+. -e (on(&uded t.en t.$t t.ese (ir(u%st$n(es re0uted t.e petitioners/ $ssertion o0 unre$son$)&e de&$6 on t.e p$rt o0 t.e L"P. A re-ev$&u$tion o0 t.e (ir(u%st$n(es o0 t.is ($se $nd t.e p$rties/ $r'u%ents, vie3ed in &i'.t o0 t.e ;ust (o%pens$tion re@uire%ent in t.e eAer(ise o0 t.e St$te/s in.erent po3er o0 e%inent do%$in, (o%pe&s us to re-eA$%ine our 0indin's $nd (on(&usions. E%inent do%$in is t.e po3er o0 t.e St$te to t$:e priv$te propert6 0or pu)&i( use. It is $n in.erent po3er o0 St$te $s it is $ po3er ne(ess$r6 0or t.e St$te/s eAisten(e< it is $ po3er t.e St$te ($nnot do 3it.out. B1C As $n in.erent po3er, it does not need $t $&& to )e e%)odied in t.e Constitution< i0 it is %entioned $t $&&, it is so&e&6 0or purposes o0 &i%itin' 3.$t is ot.er3ise $n un&i%ited po3er. !.e &i%it$tion is 0ound in t.e "i&& o0 Ri'.ts B?C I t.$t p$rt o0 t.e Constitution 3.ose provisions $&& $i% $t t.e prote(tion o0 individu$&s $'$inst t.e eA(essive eAer(ise o0 'overn%ent$& po3ers.
B=C
Se(tion 2, Arti(&e III o0 t.e *2>9 Constitution 53.i(. re$ds ./o private propert) sha $e ta0en for p#$ ic #se "itho#t (#st compensation .H7 provides t3o essenti$& &i%it$tions to t.e po3er o0 e%inent do%$in, n$%e&6, t.$t 5*7 t.e purpose o0 t$:in' %ust )e 0or public use $nd 5+7 ?ust compensation %ust )e 'iven to t.e o3ner o0 t.e priv$te propert6. It is not $((ident$& t.$t Se(tion 2 spe(i0ies t.$t (o%pens$tion s.ou&d )e G;ustH $s t.e s$0e'u$rd is t.ere to ensure $ )$&$n(e I propert6 is not to )e t$:en 0or pu)&i( use $t t.e eApense o0 priv$te interests< t.e pu)&i(, t.rou'. t.e St$te, %ust
)$&$n(e t.e in;ur6 t.$t t.e t$:in' o0 propert6 ($uses t.rou'. (o%pens$tion 0or 3.$t is t$:en, value for value. Nor is it $((ident$& t.$t t.e "i&& o0 Ri'.ts is interpreted &i)er$&&6 in 0$vor o0 t.e individu$& $nd stri(t&6 $'$inst t.e 'overn%ent. !.e prote(tion o0 t.e individu$& is t.e re$son 0or t.e "i&& o0 Ri'.ts/ )ein'< to :eep t.e eAer(ise o0 t.e po3ers o0 'overn%ent 3it.in re$son$)&e )ounds is 3.$t it see:s.B8C !.e (on(ept o0 G;ust (o%pens$tionH is not ne3 to P.i&ippine (onstitution$& &$3, )ut is not ori'in$& to t.e P.i&ippines< it is $ tr$nsp&$nt 0ro% t.e A%eri($n Constitution.B>C It 0ound 0erti&e $pp&i($tion in t.is (ountr6 p$rti(u&$r&6 in t.e $re$ o0 $'r$ri$n re0or% 3.ere t.e t$:in' o0 priv$te propert6 0or distri)ution to &$nd&ess 0$r%ers .$s )een e@u$ted to t.e Gpu)&i( useH t.$t t.e Constitution re@uires. In Land Ban0 of the Phi ippines v. Ori a ,B2C $ v$&u$tion ($se under our $'r$ri$n re0or% &$3, t.is Court .$d o(($sion to st$te:
B9C
Constitution$&&6, J;ust (o%pens$tionJ is t.e su% e@uiv$&ent to t.e %$r:et v$&ue o0 t.e propert6, )ro$d&6 des(ri)ed $s t.e pri(e 0iAed )6 t.e se&&er in open %$r:et in t.e usu$& $nd ordin$r6 (ourse o0 &e'$& $(tion $nd (o%petition, or t.e 0$ir v$&ue o0 t.e propert6 $s )et3een t.e one 3.o re(eives $nd t.e one 3.o desires to se&&, it )ein' 0iAed $t t.e ti%e o0 t.e $(tu$& t$:in' )6 t.e 'overn%ent. "ust compensation is efine as the full an fair e@uiAalent of the propert4 ta<en from its o3ner b4 the e.propriator% It .$s )een repe$ted&6 stressed )6 t.is Court t.$t t.e true %e$sure is not t.e t$:erKs '$in )ut t.e o3nerKs &oss. !.e 3ord J;ustJ is used to %odi06 t.e %e$nin' o0 t.e 3ord J(o%pens$tionJ to (onve6 t.e ide$ t.$t the e@uiAalent to be 5iAen for the propert4 to be ta<en shall be real$ substantial$ full an ample%B*,C BE%p.$sis supp&ied.C
In t.e present ($se, 3.i&e t.e AR initi$&&6 v$&ued t.e petitioners/ &$nd.o&din's $t $ tot$& o0 P+?*,=92,*,1.,+,B**C t.e R!C, $(tin' $s $ spe(i$& $'r$ri$n (ourt, deter%ined t.e $(tu$& v$&ue o0 t.e petitioners/ &$nd.o&din's to )e P*,=>=,*92,,,,.,,. This va #ation, a findin* of fact, has s#$se1#ent ) $een affirmed $) this Co#rt, and is no" $e)ond 1#estion. In e%inent do%$in ter%s, t.is $%ount is t.e Gre$&, su)st$nti$&, 0u&& $nd $%p&eH (o%pens$tion t.e 'overn%ent %ust p$6 to )e G;ustH to t.e &$ndo3ners. Si'ni0i($nt&6, t.is 0in$& ;udi(i$& v$&u$tion is 0$r re%oved 0ro% t.e initi$& v$&u$tion %$de )6 t.e AR< their Aalues iffer b4 P)$);)$8,,$B,8%77 I in itse&0 $
ver6 su)st$nti$& su% t.$t is rou'.&6 0our ti%es t.e ori'in$& AR v$&u$tion. -e %ention t.ese v$&u$tions $s t.e6 indi($te to us ho" #nderva #ed the petitioners! ands had $een at the start, partic# ar ) at the time the petitioners! andho din*s "ere .ta0en2. !.is re$son $pp$rent&6 (o%pe&&ed t.e petitioners to re&ent&ess&6 pursue t.eir v$&u$tion (&$i%s $&& t.e6 3$6 up to t.e &eve& o0 t.is Court. -.i&e t.e L"P deposited t.e tot$& $%ount o0 P9*,>2*,+?8.8+ into t.e petitioners/ $((ounts 5P+8,1,2,?12.>8 0or A4C $nd P1?,1>*,9,8.98 0or HPI7 $t t.e ti%e t.e &$nd.o&din's 3ere t$:en, t.ese $%ounts 3ere %ere p$rti$& p$6%ents t.$t on&6 $%ounted to ?E o0 t.e P*,=>=,*92,,,,.,, $(tu$& v$&ue o0 t.e eApropri$ted properties. -e point t.is $spe(t out to s.o3 t.$t t.e initi$& p$6%ents %$de )6 t.e L"P 3.en t.e petitioners/ &$nd.o&din's 3ere t$:en, $&t.ou'. pro%pt&6 3it.dr$3n )6 t.e petitioners, (ou&d not )6 $n6 %e$ns )e (onsidered $ 0$ir eA(.$n'e o0 v$&ues $t t.e ti%e o0 t$:in'< in 0$(t, t.e L"P/s $(tu$& deposit (ou&d not )e s$id to )e su)st$nti$& even 0ro% t.e ori'in$& L"P v$&u$tion o0 P+?*,=92,*,=.2,. !.us, t.e deposits %i'.t .$ve )een su00i(ient 0or purposes o0 t.e i%%edi$te t$:in' o0 t.e &$nd.o&din's )ut ($nnot )e (&$i%ed $s $%ounts t.$t 3ou&d eA(use t.e L"P from the pa)ment of interest on the #npaid $a ance o0 t.e (o%pens$tion due. As dis(ussed $t &en't. )e&o3, t.e6 3ere not enou'. to (o%pens$te t.e petitioners 0or t.e potenti$& in(o%e t.e &$nd.o&din's (ou&d .$ve e$rned 0or t.e% i0 no i%%edi$te t$:in' .$d t$:en p&$(e. Under t.e (ir(u%st$n(es, t.e St$te $(ted oppressive&6 $nd 3$s 0$r 0ro% G;ustH in t.eir position to den6 t.e petitioners o0 t.e potenti$& in(o%e t.$t t.e i%%edi$te t$:in' o0 t.eir properties ent$i&ed. Just Compensation from the Prism of the Element of Takin . Ap$rt 0ro% t.e re@uire%ent t.$t (o%pens$tion 0or eApropri$ted &$nd %ust )e 0$ir $nd re$son$)&e, compensation$ to be C?ust$D must also be ma e 3ithout ela4%B*+C -it.out pro%pt p$6%ent, (o%pens$tion ($nnot )e (onsidered J;ustJ if the propert) is immediate ) ta0en $s t.e propert6 o3ner su00ers t.e i%%edi$te depriv$tion o0 )ot. .is &$nd $nd its 0ruits or in(o%e. !.is is t.e prin(ip&e $t t.e (ore o0 t.e present ($se 3.ere t.e petitioners 3ere %$de to 3$it 0or %ore t.$n $ de($de after the ta0in* of their propert) )e0ore
t.e6 $(tu$&&6 re(eived t.e 0u&& $%ount of the principa o0 t.e ;ust (o%pens$tion due t.e%.B*=C >hat the4 haAe not receiAe to ate is the income of their lan!hol!in s correspon in5 to 3hat the4 3oul haAe receiAe ha no uncompensate ta<in5 of these lan s been imme iatel4 ma e% !.is in(o%e, in ter%s o0 t.e interest on t.e unp$id prin(ip$&, is t.e su);e(t o0 t.e (urrent &iti'$tion. -e re(o'niDed in Rep#$ ic v. Co#rt of Appea sB*1C t.e need 0or pro%pt p$6%ent $nd t.e ne(essit6 o0 t.e p$6%ent o0 interest to (o%pens$te 0or $n6 de&$6 in t.e p$6%ent o0 (o%pens$tion 0or propert6 $&re$d6 t$:en. -e ru&ed in t.is ($se t.$t:
!.e (onstitution$& &i%it$tion o0 G;ust (o%pens$tionH is (onsidered to )e t.e su% e@uiv$&ent to t.e %$r:et v$&ue o0 t.e propert6, )ro$d&6 des(ri)ed to )e t.e pri(e 0iAed )6 t.e se&&er in open %$r:et in t.e usu$& $nd ordin$r6 (ourse o0 &e'$& $(tion $nd (o%petition or t.e 0$ir v$&ue o0 t.e propert6 $s )et3een one 3.o re(eives, $nd one 3.o desires to se&&, iB0C 0iAed $t t.e ti%e o0 t.e $(tu$& t$:in' )6 t.e 'overn%ent. !.us, if propert4 is ta<en for public use before compensation is eposite 3ith the court haAin5 ?uris iction oAer the case$ the final compensation must inclu e interestEsF on its ?ust Aalue to be compute from the time the propert4 is ta<en to the time 3hen compensation is actuall4 pai or eposite 3ith the court. In fine$ bet3een the ta<in5 of the propert4 an the actual pa4ment$ le5al interestEsF accrue in or er to place the o3ner in a position as 5oo as 9but not better than: the position he 3as in before the ta<in5 occurre %B*?C BE%p.$sis supp&ied.C
Aside 0ro% t.is ru&in', Rep#$ ic not$)&6 overturned t.e Court/s previous ru&in' in /ationa Po"er Corporation v. An*asB*8C 3.i(. .e&d t.$t ;ust (o%pens$tion due 0or eApropri$ted properties is not $ &o$n or 0or)e$r$n(e o0 %one6 )ut inde%nit6 0or d$%$'es 0or t.e de&$6 in p$6%ent< sin(e t.e interest invo&ved is in t.e n$ture o0 d$%$'es r$t.er t.$n e$rnin's 0ro% &o$ns, t.en Art. ++,2 o0 t.e Civi& Code, 3.i(. 0iAes &e'$& interest $t 8E, s.$&& $pp&6. In Rep#$ ic, t.e Court re(o'niDed t.$t the ?ust compensation ue to the lan o3ners for their e.propriate propert4 amounte to an effectiAe forbearance on the part of the State% App&6in' t.e +astern ,hippin* Linesru&in', B*9C t.e Court 0iAed t.e $pp&i($)&e interest r$te $t *+E per $nnu%, (o%puted 0ro% t.e ti%e t.e propert6 3$s t$:en unti& t.e 0u&& $%ount o0 ;ust (o%pens$tion 3$s
p$id, in order to e&i%in$te t.e issue o0 t.e (onst$nt 0&u(tu$tion $nd in0&$tion o0 t.e v$&ue o0 t.e (urren(6 over ti%e. In t.e Court/s o3n 3ords:
!.e "u&$($n tri$& (ourt, in its *292 de(ision, 3$s (orre(t in i%posin' interestBsC on t.e Don$& v$&ue o0 t.e propert6 to )e (o%puted 0ro% t.e ti%e petitioner instituted (onde%n$tion pro(eedin's $nd Gtoo:H t.e propert6 in Septe%)er *282. This allo3ance of interest on the amount foun to be the Aalue of the propert4 as of the time of the ta<in5 compute $ bein5 an effectiAe forbearance$ at )12 per annum shoul help eliminate the issue of the constant fluctuation an inflation of the Aalue of the currenc4 oAer time% B*>C BE%p.$sis supp&ied.C
-e su)se@uent&6 up.e&d Rep#$ ic!s *+E per $nnu% interest r$te on t.e unp$id eApropri$tion (o%pens$tion in t.e 0o&&o3in' ($ses: Re)es v. /ationa Ho#sin* A#thorit),B*2C Land Ban0 of the Phi ippines v. 3)coco,B+,C Rep#$ ic v. Co#rt of Appea s,B+*C Land Ban0 of the Phi ippines v. Imperia ,B++C Phi ippine Ports A#thorit) v. Rosa es4Bondoc,B+=C $nd C#rata v. Phi ippine Ports A#thorit).B+1C !.ese 3ere t.e est$)&is.ed ru&in's t.$t stood )e0ore t.is Court issued t.e (urrent&6 $ss$i&ed Reso&ution o0 e(e%)er 1, +,,2. These 3oul be the rulin5s this Court shall reAerse an e/establish if 3e maintain an affirm our rulin5 eletin5 the )12 interest on the unpai balance of compensation ue for properties alrea 4 ta<en% Under t.e (ir(u%st$n(es o0 t.e present ($se, 3e see no (o%pe&&in' re$son to dep$rt 0ro% t.e ru&e t.$t Rep#$ ic 0ir%&6 est$)&is.ed. Let it )e re%e%)ered t.$t s.orn o0 its e%inent do%$in $nd so(i$& ;usti(e $spe(ts, 3.$t t.e $'r$ri$n &$nd re0or% pro'r$% invo&ves is t.e purchase )6 t.e 'overn%ent, t.rou'. t.e L"P, o0 $'ri(u&tur$& &$nds 0or s$&e $nd distri)ution to 0$r%ers. As $ pur(.$se, it invo&ves $n eA(.$n'e o0 v$&ues I t.e &$nd.o&din's in eA(.$n'e 0or t.e L"P/s p$6%ent. In eterminin5 the ?ust compensation for this e.chan5e$ ho3eAer$ the measure to be borne in min is not the ta<erGs 5ain but the o3nerGs loss B+?C since 3hat is inAolAe is the ta<eoAer of priAate propert4 un er the State=s coerciAe po3er% As %entioned $)ove, in t.e v$&ue-0or-v$&ue eA(.$n'e in $n e%inent do%$in situ$tion, t.e St$te %ust ensure t.$t t.e individu$& 3.ose propert6 is t$:en is not s.ort(.$n'ed $nd %ust .en(e ($rr6 t.e )urden o0 s.o3in' t.$t t.e G;ust (o%pens$tionH re@uire%ent o0 t.e "i&& o0 Ri'.ts is s$tis0ied.
!.e o3ner/s &oss, o0 (ourse, is not on&6 .is propert6 )ut $&so its in(o%e'ener$tin' potenti$&. !.us, 3.en propert6 is t$:en, 0u&& (o%pens$tion o0 its v$&ue %ust i%%edi$te&6 )e p$id to $(.ieve $ 0$ir eA(.$n'e 0or t.e propert6 $nd t.e potenti$& in(o%e &ost. !.e ;ust (o%pens$tion is %$de $v$i&$)&e to t.e propert6 o3ner so t.$t .e %$6 derive in(o%e 0ro% t.is (o%pens$tion, in t.e s$%e %$nner t.$t .e 3ou&d .$ve derived in(o%e 0ro% .is eApropri$ted propert6. I0 0u&& (o%pens$tion is not p$id 0or propert6 t$:en, t.en t.e St$te %ust %$:e up 0or t.e s.ort0$&& in t.e e$rnin' potenti$& i%%edi$te&6 &ost due to t.e t$:in', $nd t.e $)sen(e o0 rep&$(e%ent propert6 0ro% 3.i(. in(o%e ($n )e derived< interest on t.e unp$id (o%pens$tion )e(o%es due $s (o%p&i$n(e 3it. t.e (onstitution$& %$nd$te on e%inent do%$in $nd $s $ )$si( %e$sure o0 0$irness. In t.e (onteAt o0 t.is ($se, 3.en t.e L"P too: t.e petitioners/ &$nd.o&din's 3it.out t.e (orrespondin' 0u&& p$6%ent, it )e($%e &i$)&e to t.e petitioners 0or t.e in(o%e t.e &$nd.o&din's 3ou&d .$ve e$rned .$d t.e6 not i%%edi$te&6 )een t$:en 0ro% t.e petitioners. -.$t is interestin' in t.is interp&$6, under t.e deve&op%ents o0 t.is ($se, is t.$t the LBP" #$ takin lan!hol!in s without full pa$ment while hol!in on at the same time to the interest that it shoul! have pai!" effectivel$ use! or retaine! fun!s that shoul! o to the lan!owners an! there#$ took a!vanta e of these fun!s for its own account% 4ro% t.is point o0 vie3, t.e e(e%)er *2, +,,9 Reso&ution de&etin' t.e $3$rd o0 *+E interest is not on&6 p$tent&6 $nd &e'$&&6 3ron', )ut is $&so %or$&&6 un(ons(ion$)&e 0or )ein' 'ross&6 un0$ir $nd un;ust. I0 t.e interest on t.e ;ust (o%pens$tion due I in re$&it6 t.e e@uiv$&ent o0 t.e 0ruits or in(o%e o0 t.e &$nd.o&din's 3ou&d .$ve 6ie&ded .$d t.ese &$nds not )een t$:en I 3ou&d )e denied, t.e resu&t is e00e(tive&6 $ (on0is($tor6 $(tion )6 t.is Court in 0$vor o0 t.e L"P. -e 3ou&d )e $&&o3in' t.e L"P, 0or t3e&ve &on' 6e$rs, to .$ve 0ree use o0 t.e interest t.$t s.ou&d .$ve 'one to t.e &$ndo3ners. Ot.er3ise st$ted, if 3e continue to en4 the petitioners= present motion for reconsi eration$ 3e 3oul H illo5icall4 an 3ithout much thou5ht to the fairness that the situation eman s H uphol the interests of the #BP$ not onl4 at the e.pense of the lan o3ners but also that of substantial ?ustice as 3ell% Lest t.is Court )e $ p$rt6 to t.is %onu%ent$& un0$irness in $ so(i$& pro'r$% $i%ed $t 0osterin' )$&$n(e in our so(iet6, 3e no3 .$ve to rin' t.e )e&& t.$t 3e .$ve
%uted in t.e p$st, $nd 0or%$&&6 de(&$re t.$t t.e L"P/s position is &e'$&&6 $nd %or$&&6 3ron'. !o do &ess t.$n t.is is to &e$ve t.e de%$nds o0 t.e (onstitution$& ;ust (o%pens$tion st$nd$rd 5in ter%s o0 &$37 $nd o0 our o3n (ons(ien(e 5in ter%s o0 %or$&it67 3$ntin' $nd uns$tis0ied. The Dela$ in Pa$ment %ssue Sep$r$te&6 0ro% t.e de%$nd$)i&it6 o0 interest )e($use o0 t.e 0$i&ure to 0u&&6 p$6 0or propert6 $&re$d6 t$:en, $ re(urrin' issue in t.e ($se is t.e $ttri)ution o0 t.e de&$6. !.$t de&$6 in p$6%ent o((urred is not $nd ($nnot $t $&& )e disputed. -.i&e t.e L"P (&$i%ed t.$t it %$de initi$& p$6%ents o0 P1**,982,*8>.=+ 5out o0 t.e prin(ip$& su% due o0 P*,=>=,*92,,,,.,,7, the un ispute fact is that the petitioners 3ere epriAe of their lan s on &ecember ,$ ),,* 53.en tit&es to t.eir &$nd.o&din's 3ere ($n(e&&ed $nd tr$ns0erred to t.e Repu)&i( o0 t.e P.i&ippines7, $nd receiAe full pa4ment of the principal amount ue them onl4 on Ma4 ,$ 177B% In t.e interi%, t.e6 re(eived no in(o%e 0ro% t.eir &$nd.o&din's )e($use t.ese &$nd.o&din's .$d )een t$:en. Nor did t.e6 re(eive $de@u$te in(o%e 0ro% 3.$t s.ou&d rep&$(e t.e in(o%e potenti$& o0 t.eir &$nd.o&din's )e($use t.e L"P re0used to p$6 interest 3.i&e 3it..o&din' t.e 0u&& $%ount o0 t.e prin(ip$& o0 t.e ;ust (o%pens$tion due )6 (&$i%in' $ 'ross&6 &o3 v$&u$tion. !.is s$d st$te (ontinued 0or %ore t.$n $ de($de. In $n6 &$n'u$'e $nd )6 $n6 %e$sure, $ &en't.6 de&$6 in p$6%ent o((urred. An i%port$nt st$rtin' point in (onsiderin' $ttri)ution 0or t.e de&$6 is t.$t t.e petitioners Aoluntaril4 offere to sell their lan hol in5s to the 5oAernment=s lan reform pro5ram< t.e6 t.e%se&ves su)%itted t.eir Vo&unt$r6 O00er to Se&& $pp&i($tions to t.e AR, $nd t.e6 0u&&6 (ooper$ted 3it. t.e 'overn%ent/s pro'r$%. !.e present ($se t.ere0ore is not one 3.ere su)st$nti$& (on0&i(t $rose on t.e issue o0 3.et.er eApropri$tion is proper< t.e petitioners vo&unt$ri&6 su)%itted to eApropri$tion $nd surrendered t.eir &$nd.o&din's, $&t.ou'. t.e6 (ontested t.e v$&u$tion t.$t t.e 'overn%ent %$de.
Presu%$)&6, .$d t.e &$nd.o&din's )een proper&6 v$&ued, t.e petitioners 3ou&d .$ve $((epted t.e p$6%ent o0 ;ust (o%pens$tion $nd t.ere 3ou&d .$ve )een no need 0or t.e% to 'o to t.e eAtent o0 0i&in' $ v$&u$tion ($se. "ut, $s )orne )6 t.e re(ords, t.e petitioners/ &$nds 3ere 'ross&6 underv$&ued )6 t.e AR, &e$vin' t.e petitioners 3it. no (.oi(e )ut to 0i&e $(tions to se(ure 3.$t is ;ust&6 due t.e%. !.e AR/s initi$& 'ross underv$&u$tion st$rted t.e (6(&e o0 (ourt $(tions t.$t 0o&&o3ed, 3.ere t.e L"P eventu$&&6 (&$i%ed t.$t it (ou&d not )e 0$u&ted 0or see:in' ;udi(i$& re(ourse to de0end t.e 'overn%ent/s $nd its o3n interests in &i'.t o0 t.e petitioners/ v$&u$tion (&$i%s. !.is L"P (&$i%, o0 (ourse, (onvenient&6 0or'ets t.$t $t t.e root o0 $&& t.ese v$&u$tion (&$i%s $nd (ounter(&$i%s 3$s t.e initi$& 'ross underv$&u$tion )6 AR t.$t t.e L"P stout&6 de0ended. At t.e end, t.is underv$&u$tion 3$s proven in(orre(t )6 no &ess t.$n t.is Court< t.e petitioners 3ere proven (orre(t in t.eir (&$i%, $nd t.e (orre(t v$&u$tion I more than five4fo d the initia DAR va #ation I 3$s de(reed $nd )e($%e 0in$&. A&& t.ese deve&op%ents ($nnot no3 )e disre'$rded $nd redu(ed to insi'ni0i($n(e. In )&unter ter%s, t.e 'overn%ent $nd t.e L"P ($nnot no3 )e .e$rd to (&$i% t.$t t.e6 3ere si%p&6 prote(tin' t.eir interests 3.en t.e6 stu))orn&6 de0ended t.eir underv$&ued positions )e0ore t.e (ourts. !.e %ore $pt $nd $((ur$te st$te%ent is t.$t t.e6 $dopted $ 'ross&6 unre$son$)&e position $nd t.e $dverse deve&op%ents t.$t 0o&&o3ed, p$rti(u&$r&6 t.e (on(o%it$nt de&$6, s.ou&d )e dire(t&6 (.$r'e$)&e to t.e%. !o )e sure, t.e petitioners 3ere not (o%p&ete&6 (orre(t in t.e &e'$& steps t.e6 too: in t.eir v$&u$tion (&$i%s. !.e6 initi$&&6 0i&ed t.eir v$&u$tion (&$i% )e0ore t.e ARA" inste$d o0 i%%edi$te&6 see:in' ;udi(i$& intervention. !.e ARA", .o3ever, (ontri)uted its s.$re to t.e petitioners/ error 3.en it 0$i&ed or re0used to $(t on t.e v$&u$tion petitions 0or %ore t.$n t.ree 5=7 6e$rs. !.us, on top o0 t.e AR underv$&u$tion 3$s t.e ARA" in$(tion $0ter t.e petitioners/ &$nd.o&din's .$d )een t$:en. !.is Court/s e(ision o0 4e)ru$r6 8, +,,9 du&6 noted t.is $nd o)served:
It is not (ontroverted t.$t t.is ($se st$rted 3$6 )$(: on *+ O(to)er *22?, 3.en A4C $nd HPI vo&unt$ri&6 o00ered to se&& t.e properties to t.e AR. In vie3 o0 t.e 0$i&ure o0 t.e p$rties to $'ree on t.e v$&u$tion o0 t.e properties, t.e Co%p&$int 0or eter%in$tion o0 Just Co%pens$tion 3$s 0i&ed )e0ore t.e ARA"
on *1 4e)ru$r6 *229. espite t.e &$pse o0 %ore t.$n t.ree 6e$rs 0ro% t.e 0i&in' o0 t.e (o%p&$int, t.e ARA" 0$i&ed to render $ de(ision on t.e v$&u$tion o0 t.e &$nd. Me$nti%e, t.e tit&es over t.e properties o0 A4C $nd HPI .$d $&re$d6 )een ($n(e&&ed $nd in t.eir p&$(e $ ne3 (erti0i($te o0 tit&e 3$s issued in t.e n$%e o0 t.e Repu)&i( o0 t.e P.i&ippines, even $s 0$r )$(: $s 2 e(e%)er *228. A period o0 $&%ost *, 6e$rs .$s &$psed. 4or t.is re$son, t.ere is no dispute t.$t t.is ($se .$s tru&6 &$n'uis.ed 0or $ &on' period o0 ti%e, t.e de&$6 )ein' %$in&6 $ttri)ut$)&e to )ot. o00i(i$& in$(tion $nd inde(ision, p$rti(u&$r&6 on t.e deter%in$tion o0 t.e $%ount o0 ;ust (o%pens$tion, to t.e detri%ent o0 A4C $nd HPI, 3.i(. to d$te, .$ve 6et to )e 0u&&6 (o%pens$ted 0or t.e properties 3.i(. $re $&re$d6 in t.e .$nds o0 0$r%er-)ene0i(i$ries, 3.o, due to t.e &$pse o0 ti%e, %$6 .$ve $&re$d6 (onverted or so&d t.e &$nd $3$rded to t.e%. Ieril4$ these t3o cases coul haAe been ispose 3ith ispatch 3ere it not for #BP=s counsel causin5 unnecessar4 ela4% At t.e in(eption o0 t.is ($se, ARA", $n $'en(6 o0 t.e AR 3.i(. 3$s (o%%issioned )6 &$3 to deter%ine ;ust (o%pens$tion, s$t on t.e ($ses 0or t.ree 6e$rs, 3.i(. 3$s t.e re$son t.$t A4C $nd HPI 0i&ed t.e ($ses )e0ore t.e R!C. -e unders(ore t.e pronoun(e%ent o0 t.e R!C t.$t Gthe ela4 b4 &ARAB in the etermination of ?ust compensation coul onl4 mean the reluctance of the &epartment of A5rarian Reform an the #an Ban< of the Philippines to pa4 the claim of ?ust compensation b4 corporate lan o3ners%H !o $&&o3 t.e t$:in' o0 &$ndo3ners/ properties, $nd to &e$ve t.e% e%pt6.$nded 3.i&e 'overn%ent 3it..o&ds (o%pens$tion is undou)ted&6 oppressive. BE%p.$sis supp&ied.C
!.ese st$te%ents ($nnot )ut )e true tod$6 $s t.e6 3ere 3.en 3e ori'in$&&6 de(ided t.e ($se $nd $3$rded *+E interest on t.e )$&$n(e o0 t.e ;ust (o%pens$tion due. -.i&e t.e petitioners 3ere undisputed&6 %ist$:en in initi$&&6 see:in' re(ourse t.rou'. t.e AR, t.is $'en(6 itse&0 I .en(e, t.e 'overn%ent I (o%%itted $ 'r$ver tr$ns'ression 3.en it 0$i&ed to $(t $t $&& on t.e petitioners/ (o%p&$ints 0or deter%in$tion o0 ;ust (o%pens$tion. In su%, in $ )$&$n(in' o0 t.e $ttend$nt de&$6-re&$ted (ir(u%st$n(es o0 t.is ($se, de&$6 s.ou&d )e &$id $t t.e doorsteps o0 t.e 'overn%ent, not $t t.e petitioners/. -e (on(&ude, too, t.$t t.e 'overn%ent s.ou&d not )e $&&o3ed to eA(u&p$te itse&0 0ro% t.is de&$6 $nd s.ou&d su00er $&& t.e (onse@uen(es t.e de&$6 ($used. The LBPs ar uments on the applica#ilit$ of cases imposin
&'( interest !.e L"P (&$i%s in its Co%%ent t.$t our ru&in's in Rep#$ ic v. Co#rt of Appea s,B+8C Re)es v. /ationa Ho#sin* A#thorit),B+9C $nd Land Ban0 of the Phi ippines v. Imperia ,B+>C ($nnot )e $pp&ied to t.e present ($se. A((ordin' to t.e L"P, Rep#$ ic is in$pp&i($)&e )e($use, first, t.e &$ndo3ners in Rep#$ ic re%$ined unp$id, not3it.st$ndin' t.e 0$(t t.$t t.e $3$rd 0or ;ust (o%pens$tion .$d $&re$d6 )een 0iAed )6 0in$& ;ud'%ent< in t.e present ($se, t.e Court $&re$d6 $(:no3&ed'ed t.$t Gpertinent $%ountsH 3ere deposited in 0$vor o0 t.e &$ndo3ners 3it.in *1 %ont.s 0ro% t.e 0i&in' o0 t.eir (o%p&$int. ,econd, 3.i&e Rep#$ ic invo&ved $n ordin$r6 eApropri$tion ($se, t.e present ($se invo&ves eApropri$tion 0or $'r$ri$n re0or%. Fina ), t.e ;ust (o%pens$tion in Rep#$ ic re%$ined unp$id not3it.st$ndin' t.e 0in$&it6 o0 ;ud'%ent, 3.i&e t.e ;ust (o%pens$tion in t.e present ($se 3$s i%%edi$te&6 p$id in 0u&& $0ter L"P re(eived $ (op6 o0 t.e Court/s reso&ution -e 0ind no %erit in t.ese $ssertions. As 3e dis(ussed $)ove, t.e Gpertinent $%ountsH $&&e'ed&6 deposited )6 L"P 3ere %ere p$rti$& p$6%ents t.$t $%ounted to $ %e$s&6 ?E o0 t.e $(tu$& v$&ue o0 t.e properties eApropri$ted. !.e6 (ou&d )e t.e )$sis 0or t.e i%%edi$te t$:in' o0 t.e eApropri$ted propert6 )ut )6 no stret(. o0 t.e i%$'in$tion ($n t.ese no%in$& $%ounts )e (onsidered GpertinentH enou'. to s$tis06 t.e 0u&& re@uire%ent o0 ;ust (o%pens$tion I i.e., t.e 0u&& $nd 0$ir e@uiv$&ent o0 t.e eApropri$ted propert6, t$:in' into $((ount its in(o%e potenti$& $nd t.e 0ore'one in(o%e &ost )e($use o0 t.e i%%edi$te t$:in'. -e &i:e3ise 0ind no )$sis to support t.e L"P/s t.eor6 t.$t Rep#$ ic $nd t.e present ($se .$ve to )e tre$ted di00erent&6 )e($use t.e 0irst invo&ves $ Gre'u&$rH eApropri$tion ($se, 3.i&e t.e present ($se invo&ves eApropri$tion pursu$nt to t.e (ountr6/s $'r$ri$n re0or% pro'r$%. In )ot. ($ses, t.e po3er o0 e%inent do%$in 3$s used $nd priv$te propert6 3$s t$:en 0or pu)&i( use. -.6 one s.ou&d )e di00erent 0ro% t.e ot.er, so t.$t t.e ;ust (o%pens$tion ru&in' in one s.ou&d not $pp&6 to t.e ot.er, tru&6 es($pes us. I0 t.ere is to )e $ di00eren(e, t.e tre$t%ent o0
$'r$ri$n re0or% eApropri$tions s.ou&d )e stri(ter $nd on $ .i'.er p&$ne )e($use o0 t.e 'overn%ent/s so(iet$& (on(erns $nd o);e(tives. !o )e sure, t.e 'overn%ent ($nnot $tte%pt to re%ed6 t.e i&&s o0 one se(tor o0 so(iet6 )6 s$(ri0i(in' t.e interests o0 ot.ers 3it.in t.e s$%e so(iet6. 4in$&&6, 3e note t.$t t.e 0in$&it6 o0 t.e de(ision 5t.$t 0iAed t.e v$&ue o0 ;ust (o%pens$tion7 in Rep#$ ic 3$s not $ %$teri$& (onsider$tion 0or t.e Court in $3$rdin' t.e &$ndo3ners *+E interest. !.e Court, in Rep#$ ic, si%p&6 $00ir%ed t.e R!C ru&in' i%posin' &e'$& interest on t.e $%ount o0 ;ust (o%pens$tion due. In t.e pro(ess, t.e Court deter%ined t.$t t.e &e'$& interest s.ou&d )e *+E $0ter re(o'niDin' t.$t t.e ;ust (o%pens$tion due 3$s e00e(tive&6 $ 0or)e$r$n(e on t.e p$rt o0 t.e 'overn%ent. H$d t.e 0in$&it6 o0 t.e ;ud'%ent )een t.e (riti($& 0$(tor, t.en t.e *+E interest s.ou&d .$ve )een i%posed from the time the RTC ecision fi.in5 ?ust compensation became final% Inste$d, t.e *+E interest 3$s i%posed 0ro% t.e ti%e t.$t t.e Rep#$ ic (o%%en(ed (onde%n$tion pro(eedin's $nd Gtoo:H t.e propert6. !.e L"P $ddition$&&6 $sserts t.$t t.e petitioners erroneous&6 re&ied on t.e ru&in' in Re)es v. /ationa Ho#sin* A#thorit). !.e L"P (&$i%s t.$t 3e ($nnot $pp&6 Re)es )e($use it invo&ved ;ust (o%pens$tion t.$t re%$ined unp$id despite t.e 0in$&it6 o0 t.e eApropri$tion de(ision. L"P/s point o0 distin(tion is t.$t ;ust (o%pens$tion 3$s i%%edi$te&6 p$id in t.e present ($se upon t.e Court/s deter%in$tion o0 t.e $(tu$& v$&ue o0 t.e eApropri$ted properties. L"P (&$i%s, too, t.$t in Re)es, t.e Court est$)&is.ed t.$t t.e re0us$& o0 t.e NHA to p$6 ;ust (o%pens$tion 3$s un0ounded $nd un;usti0ied, 3.ere$s t.e L"P in t.e present ($se (&e$r&6 de%onstr$ted its 3i&&in'ness to p$6 ;ust (o%pens$tion. L$st&6, in Re)es, t.e re(ords s.o3ed t.$t t.ere 3$s $n outst$ndin' )$&$n(e t.$t ou'.t to )e p$id, 3.i&e t.e e&e%ent o0 $n outst$ndin' )$&$n(e is $)sent in t.e present ($se. Contr$r6 to t.e L"P/s opinion, t.e i%position o0 t.e *+E interest in Re)es did not depend on eit.er t.e 0in$&it6 o0 t.e de(ision o0 t.e eApropri$tion (ourt, or on t.e 0indin' t.$t t.e NHA/s re0us$& to p$6 ;ust (o%pens$tion 3$s un0ounded $nd un;usti0ied. Luite (&e$r&6, t.e Court i%posed *+E interest )$sed on t.e ru&in' in Rep#$ ic v. Co#rt of Appea s t.$t G5 5 5 if propert) is ta0en for p#$ ic #se $efore compensation is deposited "ith the co#rt havin* (#risdiction over the case, the final compensation must inclu!e interest)s* on its +ust value to
#e compute! from the time the propert$ is taken to the time when compensation is actuall$ pai! or !eposite! with the court . In fine, $et"een the ta0in* of the propert) and the act#a pa)ment, e*a interest6s7 accr#e in order to p ace the o"ner in a position as *ood as 8$#t not $etter than9 the position he "as in $efore the ta0in* occ#rred.HB+2C !.is is t.e s$%e &e'$& prin(ip&e $pp&i($)&e to t.e present ($se, $s dis(ussed $)ove. -.i&e t.e L"P i%%edi$te&6 p$id t.e re%$inin' )$&$n(e on t.e ;ust (o%pens$tion due to t.e petitioners $0ter t.is Court .$d 0iAed t.e v$&ue o0 t.e eApropri$ted properties, it over&oo:s one essenti$& 0$(t I 0ro% t.e ti%e t.$t t.e St$te too: t.e petitioners/ properties unti& t.e ti%e t.$t t.e petitioners 3ere 0u&&6 p$id, $&%ost *+ &on' 6e$rs p$ssed. !.is is t.e r$tion$&e 0or i%posin' t.e *+E interest I in order to (o%pens$te t.e petitioners 0or t.e in(o%e t.e6 3ou&d .$ve %$de .$d t.e6 )een proper&6 (o%pens$ted 0or t.eir properties $t t.e ti%e o0 t.e t$:in'. 4in$&&6, t.e L"P insists t.$t t.e petitioners @uoted our ru&in' in Land Ban0 of the Phi ippines v. Imperia out o0 (onteAt. A((ordin' to t.e L"P, t.e Court i%posed &e'$& interest o0 *+E per $nnu% on&6 $0ter e(e%)er =*, +,,8, t.e d$te 3.en t.e de(ision on ;ust (o%pens$tion )e($%e 0in$&. !.e L"P is $'$in %ist$:en. !.e Imperia ($se invo&ved &$nd t.$t 3$s eApropri$ted pursu$nt to Presidenti$& e(ree No. +9, B=,C $nd 0e&& under t.e (over$'e o0 AR Ad%inistr$tive Order 5AO7 No. *=.B=*C !.is AO provided 0or t.e p$6%ent o0 $ 8E $nnu$& interest i0 t.ere is $n6 de&$6 in p$6%ent o0 ;ust (o%pens$tion. Ho3ever, Imperia 3$s de(ided in +,,9 $nd AO No. *= 3$s on&6 e00e(tive up to e(e%)er +,,8. !.us, t.e Court, re&6in' on our ru&in' in t.eRep#$ ic ($se, $pp&ied t.e prev$i&in' *+E interest ru&in' to t.e period 3.en t.e ;ust (o%pens$tion re%$ined unp$id after e(e%)er +,,8. It is 0or t.is re$son t.$t e(e%)er =*, +,,8 3$s i%port$nt, not )e($use it 3$s t.e d$te o0 0in$&it6 o0 t.e de(ision on ;ust (o%pens$tion. The &'( %nterest ,ate an! the Chico-.a/ario Dissent
!o 0u&&6 re0&e(t t.e (on(erns r$ised in t.is Court/s de&i)er$tions on t.e present ($se, 3e 0ee& it $ppropri$te to dis(uss t.e Justi(e Minit$ C.i(o-N$D$rio/s dissent 0ro% t.e Court/s e(e%)er 1, +,,2 Reso&ution. -.i&e Justi(e C.i(o-N$D$rio $d%itted t.$t t.e petitioners 3ere entit&ed to t.e *+E interest, s.e s$3 it $ppropri$te to e@uit$)&6 redu(e t.e interest (.$r'es 0ro% P*,==*,*+1,++=.,? to P1,,,,,,,,,,.,,. In support o0 t.is propos$&, s.e enu%er$ted v$rious ($ses 3.ere t.e Court, pursu$nt to Arti(&e *++2 o0 t.e Civi& Code,B=+C e@uit$)&6 redu(ed interest (.$r'es. -e di00er 3it. our estee%ed (o&&e$'ue/s vie3s on t.e $pp&i($tion o0 e@uit6. -.i&e 3e .$ve e@uit$)&6 redu(ed t.e $%ount o0 interest $3$rded in nu%erous ($ses in t.e p$st, t.ose ($ses invo&ved interest t.$t 3$s essenti$&&6 (onsensu$& in n$ture, i.e., interest stipu&$ted in si'ned $'ree%ents )et3een t.e (ontr$(tin' p$rties. In (ontr$st, t.e interest invo&ved in t.e present ($se Gruns $s $ matter of la3 $nd 0o&&o3s $s $ %$tter o0 (ourse 0ro% t.e ri'.t o0 t.e &$ndo3ner to )e p&$(ed in $s 'ood $ position $s %one6 ($n $((o%p&is., $s o0 t.e d$te o0 t$:in'.HB==C 4urt.er%ore, t.e $&&e'ed&6 (onsider$)&e p$6%ents %$de )6 t.e L"P to t.e petitioners ($nnot )e $ proper pre%ise in den6in' t.e &$ndo3ners t.e interest due t.e% under t.e &$3 $nd est$)&is.ed ;urispruden(e. If the ?ust compensation for the lan hol in5s is consi erable$ this compensation is not un ue because the lan hol in5s the o3ners 5aAe up in e.chan5e are also similarl4 consi erable H AFC 5aAe up an a55re5ate lan hol in5 of *+7%;+B; hectares$ 3hile !PI=s 5aAe up B7-%-;7B hectares. -.en t.e petitioners surrendered t.ese siDe$)&e &$nd.o&din's to t.e 'overn%ent, t.e in(o%es t.e6 '$ve up 3ere &i:e3ise siDe$)&e $nd ($nnot in $n6 3$6 )e (onsidered %inis(u&e. !.e in(o%es due 0ro% t.ese properties, eApressed $s interest, $re 3.$t t.e 'overn%ent s.ou&d return to t.e petitioners $0ter t.e 'overn%ent too: over t.eir &$nds 3it.out 0u&& p$6%ent o0 ;ust (o%pens$tion. In ot.er 3ords,the value of the lan!hol!in s themselves shoul! #e e0uivalent to the principal sum of the +ust compensation !ue1 interest is !ue an! shoul! #e pai! to compensate for the unpai! #alance of this principal sum after takin has #een complete!. !.is is t.e (o%pens$tion $rr$n'e%ent t.$t s.ou&d
prev$i& i0 su(. (o%pens$tion is to s$tis06 t.e (onstitution$& st$nd$rd o0 )ein' G;ust.H Neit.er ($n L"P/s p$6%ent o0 t.e 0u&& (o%pens$tion due )e0ore t.e 0in$&it6 o0 t.e ;ud'%ent o0 t.is Court ;usti06 t.e redu(tion o0 t.e interest due t.e%. !o ru&e ot.er3ise 3ou&d )e to 0or'et t.$t t.e petitioners .$d to 3$it t3e&ve 6e$rs 0ro% t.e ti%e t.e6 '$ve up t.eir &$nds )e0ore t.e 'overn%ent 0u&&6 p$id t.e prin(ip$& o0 t.e ;ust (o%pens$tion due t.e%. !.ese 3ere t3e&ve 6e$rs 3.en t.e6 .$d no in(o%e 0ro% t.eir &$nd.o&din's )e($use t.ese &$nd.o&din's .$ve i%%edi$te&6 )een t$:en< no in(o%e, or in$de@u$te in(o%e, $((rued to t.e% 0ro% t.e pro(eeds o0 (o%pens$tion p$6%ent due t.e% )e($use 0u&& p$6%ent .$s )een 3it..e&d )6 'overn%ent. I0 t.e 0u&& p$6%ent o0 t.e prin(ip$& su% o0 t.e ;ust (o%pens$tion is &e'$&&6 si'ni0i($nt $t $&& under t.e (ir(u%st$n(es o0 t.is ($se, t.e si'ni0i($n(e is on&6 in puttin' $ stop to t.e runnin' o0 t.e interest due )e($use t.e prin(ip$& o0 t.e ;ust (o%pens$tion due .$s )een p$id. !o (&ose our e6es to t.ese re$&ities is to (ondone 3.$t is e00e(tive&6 $ (on0is($tor6 $(tion in 0$vor o0 t.e L"P. !.$t t.e &e'$& interest due is no3 $&%ost e@uiv$&ent to t.e prin(ip$& to )e p$id is not per se $n ine@uit$)&e or un(ons(ion$)&e situ$tion, (onsiderin' t.e &en't. o0 ti%e t.e interest .$s re%$ined unp$id I $&%ost t3e&ve &on' 6e$rs. 4ro% t.e perspe(tive o0 interest in(o%e, t3e&ve 6e$rs 3ou&d .$ve )een su00i(ient 0or t.e petitioners to dou)&e t.e prin(ip$&, even i0 invested (onserv$tive&6, .$d t.e6 )een pro%pt&6 p$id t.e prin(ip$& o0 t.e ;ust (o%pens$tion due t.e%. Moreover, the interest, .o3ever enor%ous it %$6 )e, cannot be ine@uitable an unconscionable because it resulte irectl4 from the application of la3 an ?urispru ence I st$nd$rds t.$t .$ve t$:en into $((ount 0$irness $nd e@uit6 in settin' t.e interest r$tes due 0or t.e use or 0ore)e$r$n(e o0 %one6. I0 t.e L"P sees t.e tot$& interest due to )e i%%ense, it on&6 .$s itse&0 to )&$%e, $s t.is interest pi&ed up )e($use it unre$son$)&6 $(ted in its v$&u$tion o0 t.e &$nd.o&din's $nd (onse@uent&6 0$i&ed to pro%pt&6 p$6 t.e petitioners. !o )e sure, t.e (onse@uen(es o0 t.is 0$i&ure I i.e., t.e enor%it6 o0 t.e tot$& interest due $nd t.e $&&e'ed 0in$n(i$& .e%orr.$'e t.e L"P %$6 su00er I s.ou&d not )e t.e ver6 re$son t.$t 3ou&d eA(use it 0ro% 0u&& (o%p&i$n(e. !o so ru&e is to use eAtre%e&6 0&$3ed
&o'i(. !o so ru&e is to disre'$rd t.e @uestion o0 .o3 t.e L"P, $ 'overn%ent 0in$n(i$& institution t.$t no3 pro0esses di00i(u&t6 in p$6in' interest $t *+E per $nnu%, %$n$'ed t.e 0unds t.$t it 0$i&ed to p$6 t.e petitioners 0or t3e&ve &on' 6e$rs. It 3ou&d )e utter&6 0$&&$(ious, too, to $r'ue t.$t t.is Court s.ou&d tre$d &i'.t&6 in i%posin' &i$)i&ities on t.e L"P )e($use t.is )$n: represents t.e 'overn%ent $nd, u&ti%$te&6, t.e pu)&i( interest. Su00i(e it to s$6 t.$t pu)&i( interest re0ers to 3.$t 3i&& )ene0it t.e pu)&i(, not ne(ess$ri&6 t.e 'overn%ent $nd its $'en(ies 3.ose t$s: is to (ontri)ute to t.e )ene0it o0 t.e pu)&i(. Fre$ter pu)&i( )ene0it 3i&& resu&t i0 'overn%ent $'en(ies &i:e t.e L"P $re (ons(ientious in undert$:in' its t$s:s in order to $void t.e situ$tion 0$(in' it in t.is ($se. (reater public interest 3oul be serAe if it can contribute to the cre ibilit4 of the 5oAernment=s lan reform pro5ram throu5h the conscientious han lin5 of its part of this pro5ram% As our &$st point, e@uit6 $nd e@uit$)&e prin(ip&es on&6 (o%e into 0u&& p&$6 3.en $ '$p eAists in t.e &$3 $nd ;urispruden(e. B=1C As 3e .$ve s.o3n $)ove, est$)&is.ed ru&in's o0 t.is Court $re in p&$(e 0or 0u&& $pp&i($tion to t.e present ($se. !.ere is t.us no o(($sion 0or t.e e@uit$)&e (onsider$tion t.$t Justi(e C.i(oN$D$rio su''ested.
as Just
As )orne )6 t.e re(ords, t.e *+E interest (&$i%ed is on&6 on t.e di00eren(e )et3een t.e pri(e o0 t.e eApropri$ted &$nds 5deter%ined 3it. 0in$&it6 to )e P*,=>=,*92,,,,.,,7 $nd t.e $%ount o0 P1**,982,*8>.=+ $&re$d6 p$id to t.e petitioners. !.e di00eren(e )et3een t.ese 0i'ures $%ounts to t.e re%$inin' )$&$n(e o0 P29*,1,2,>=*.8> t.$t 3$s on&6 p$id on M$6 2, +,,>. As aboAe iscusse $ this amount shoul bear interest at the rate of )12 per annum from the time the petitioners= properties 3ere ta<en on &ecember ,$ ),,* up to the time of pa4ment. At t.is r$te, t.e L"P no3 o3es t.e petitioners
t.e tot$& $%ount o0 One "i&&ion !.ree Hundred !.irt6-One Mi&&ion One Hundred !3ent6-4our !.ous$nd !3o Hundred !3ent6-!.ree $nd ,?M*,, Pesos 5P*,==*,*+1,++=.,?7, (o%puted $s 0o&&o3s:
Just Co%pens$tion Le'$& Interest 0ro% *+M,2M*228 !o ,?M,2M+,,> N *+EM$nnu% *+M,2M*228 to *+M=*M*228 ,*M,*M*229 to *+M=*M+,,9 ,*M,*M+,,> to ,?M,2M+,,> += d$6s ** 6e$rs *=, d$6s 9,=1?,1??.*9 *,+>+,+8,,299.>+ 1*,?*9,92,.,9 P*,==*,*+1,++=.,?B=?C P29*,1,2,>=*.8>
The %mmuta#ilit$ of Ju! ment %ssue As $ ru&e, $ 0in$& ;ud'%ent %$6 no &on'er )e $&tered, $%ended or %odi0ied, even i0 t.e $&ter$tion, $%end%ent or %odi0i($tion is %e$nt to (orre(t 3.$t is per(eived to )e $n erroneous (on(&usion o0 0$(t or &$3 $nd re'$rd&ess o0 3.$t (ourt, )e it t.e .i'.est Court o0 t.e &$nd, rendered it.B=8C In t.e p$st, .o3ever, 3e .$ve re(o'niDed eA(eptions to t.is ru&e )6 reversin' ;ud'%ents $nd re($&&in' t.eir entries in t.e interest o0 su)st$nti$& ;usti(e $nd 3.ere spe(i$& $nd (o%pe&&in' re$sons ($&&ed 0or su(. $(tions. Not$)&6, in ,an -i*#e Corporation v. /ationa La$or Re ations Commission,B=9C :a man v. ,andi*an$a)an,B=>C Phi ippine Cons#mers Fo#ndation v. /ationa Te ecomm#nications Commission,B=2C $nd Rep#$ ic v. de os An*e es,B1,C 3e reversed our ;ud'%ent on t.e secon %otion 0or re(onsider$tion, 3.i&e in ;ir4Jen ,hippin* and -arine ,ervices v. /ationa La$or Re ations Commission ,B1*C 3e did so on $ thir %otion 0or re(onsider$tion. InCatha) Pacific v. Romi oB1+C $nd Cosio v. de Rama,B1=C 3e %odi0ied or $%ended our ru&in' on t.e se(ond %otion 0or re(onsider$tion. More re(ent&6, in t.e ($ses o0 -#no< v. Co#rt of Appea s,B11C Tan Tiac Chion* v. Hon. Cosico,B1?C -anoto0 I; v. Bar1#e, B18C $nd Barnes v. Padi a,B19C 3e re($&&ed entries o0 ;ud'%ent $0ter 0indin' t.$t doin' so 3$s in t.e interest o0 su)st$nti$& ;usti(e. In Barnes, 3e s$id:
A A A P.r$sed e&se3ise, $ 0in$& $nd eAe(utor6 ;ud'%ent ($n no &on'er )e $tt$(:ed )6 $n6 o0 t.e p$rties or )e %odi0ied, dire(t&6 or indire(t&6, even )6 t.e .i'.est (ourt o0 t.e &$nd. Ho3ever, t.is Court .$s re&$Aed t.is ru&e in order to serve su)st$nti$& ;usti(e (onsiderin' 5$7 matters of life$ libert4$ honor or propert4$ 5)7 the e.istence of special or compellin5 circumstances, 5(7 the merits of the case$ 5d7 $ ($use not entire&6 $ttri)ut$)&e to t.e 0$u&t or ne'&i'en(e o0 t.e p$rt6 0$vored )6 t.e suspension o0 t.e ru&es, 5e7 $ &$(: o0 $n6 s.o3in' t.$t t.e revie3 sou'.t is %ere&6 0rivo&ous $nd di&$tor6, $nd 507 t.e ot.er p$rt6 3i&& not )e un;ust&6 pre;udi(ed t.ere)6. Inv$ri$)&6, ru&es o0 pro(edure s.ou&d )e vie3ed $s %ere too&s desi'ned to 0$(i&it$te t.e $tt$in%ent o0 ;usti(e. !.eir stri(t $nd ri'id $pp&i($tion, 3.i(. 3ou&d resu&t in te(.ni($&ities t.$t tend to 0rustr$te r$t.er t.$n pro%ote su)st$nti$& ;usti(e, %ust $&3$6s )e es(.e3ed. Even t.e Ru&es o0 Court re0&e(ts t.is prin(ip&e. !.e po3er to suspend or even disre'$rd ru&es ($n )e so perv$sive $nd (o%pe&&in' $s to $&ter even t.$t 3.i(. t.is Court itse&0 .$d $&re$d6 de(&$red to )e 0in$&.B1>C BE%p.$sis supp&ied.C
!.$t t.e issues posed )6 t.is ($se $re o0 tr$ns(endent$& i%port$n(e is not .$rd to dis(ern 0ro% t.ese dis(ussions. A (onstitution$& &i%it$tion, 'u$r$nteed under no &ess t.$n t.e $&&-i%port$nt "i&& o0 Ri'.ts, is $t st$:e in t.is ($se: .o3 ($n (o%pens$tion in $n e%inent do%$in )e G;ustH 3.en t.e p$6%ent 0or t.e (o%pens$tion 0or propert6 $&re$d6 t$:en .$s )een unre$son$)&6 de&$6edO !o (&$i%, $s t.e $ss$i&ed Reso&ution does, t.$t on&6 priv$te interest is invo&ved in t.is ($se is to 0or'et t.$t $n eApropri$tion invo&ves t.e 'overn%ent $s $ ne(ess$r6 $(tor. It 0or'ets, too, t.$t under e%inent do%$in, t.e (onstitution$& &i%its or st$nd$rds $pp&6 to 'overn%ent 3.o ($rries t.e )urden o0 s.o3in' t.$t t.ese st$nd$rds .$ve )een %et. !.us, to si%p&6 dis%iss t.is ($se $s $ priv$te interest %$tter is $n eAtre%e&6 s.ortsi'.ted vie3 t.$t t.is Court s.ou&d not &e$ve un(orre(ted. As du&6 noted in t.e $)ove dis(ussions, t.is issue is not one o0 0irst i%pression in our ;urisdi(tion< t.e (onse@uen(es o0 de&$6 in t.e p$6%ent o0 ;ust (o%pens$tion .$ve )een sett&ed )6 t.is Court in p$st ru&in's. Our sett&ed ;urispruden(e on t.e issue $&one $((ords t.is ($se pri%$r6 i%port$n(e $s $ (ontr$r6 ru&in' 3ou&d unsett&e, on t.e 0&i%siest o0 'rounds, $&& t.e ru&in's 3e .$ve est$)&is.ed in t.e p$st.
More t.$n t.e st$)i&it6 o0 our ;urispruden(e, t.e %$tter )e0ore us is o0 tr$ns(endent$& i%port$n(e to t.e n$tion )e($use o0 t.e su);e(t %$tter invo&ved I $'r$ri$n re0or%, $ so(iet$& o);e(tive t.$t t.e 'overn%ent .$s un(e$sin'&6 sou'.t to $(.ieve in t.e p$st .$&0 (entur6. !.is re0or% pro'r$% $nd its o);e(tives 3ou&d su00er $ %$;or set)$(: i0 t.e 'overn%ent 0$&ters or is seen to )e 0$&terin', 3ittin'&6 or un3ittin'&6, t.rou'. &$(: o0 'ood 0$it. in i%p&e%entin' t.e needed re0or%s. !ru&6, $'r$ri$n re0or% is so i%port$nt to t.e n$tion$& $'end$ t.$t t.e So&i(itor Fener$&, no &ess, pointed&6 &in:ed $'ri(u&tur$& &$nds, its o3ners.ip $nd $)use, to t.e ide$ o0 revo&ution.B12C !.is &in:$'e, to our %ind, re%$ins v$&id even i0 t.e &$ndo3ner, not t.e &$nd&ess 0$r%er, is $t t.e re(eivin' end o0 t.e distortion o0 t.e $'r$ri$n re0or% pro'r$%. As 3e .$ve ru&ed o0ten enou'., ru&es o0 pro(edure s.ou&d not )e $pp&ied in $ ver6 ri'id, te(.ni($& sense< ru&es o0 pro(edure $re used on&6 to .e&p se(ure, not override, su)st$nti$& ;usti(e.B?,C As 3e eAp&$ined in :inete v. Co#rt of Appea s:B?*C
Let it )e e%p.$siDed t.$t the rules of proce ure shoul be Aie3e as mere tools esi5ne to facilitate the attainment of ?ustice . !.eir stri(t $nd ri'id $pp&i($tion, 3.i(. 3ou&d resu&t in te(.ni($&ities t.$t tend to 0rustr$te r$t.er t.$n pro%ote su)st$nti$& ;usti(e, %ust $&3$6s )e es(.e3ed. Even t.e Ru&es o0 Court re0&e(t t.is prin(ip&e. !.e po3er to suspend or even disre'$rd ru&es ($n )e so perv$sive $nd (o%pe&&in' $s to $&ter even t.$t 3.i(. t.is Court itse&0 .$s $&re$d6 de(&$red to )e 0in$&, $s 3e $re no3 (onstr$ined to do in t.e inst$nt ($se. A A A A !.e e%er'in' trend in t.e ru&in's o0 t.is Court is to $00ord ever6 p$rt6 &iti'$nt t.e $%p&est opportunit6 0or t.e proper $nd ;ust deter%in$tion o0 .is ($use, 0ree 0ro% t.e (onstr$ints o0 te(.ni($&ities. !i%e $nd $'$in, t.is Court .$s (onsistent&6 .e&d t.$t ru&es %ust not )e $pp&ied ri'id&6 so $s not to override su)st$nti$& ;usti(e.B?+C BE%p.$sis supp&ied.C
-e %$de t.e s$%e re(o'nition in Barnes,B??C on t.e under&6in' pre%ise t.$t $ (ourt/s pri%ordi$& $nd %ost i%port$nt dut6 is to render ;usti(e< in dis(.$r'in' t.e dut6 to render su)st$nti$& ;usti(e, it is per%itted to re-eA$%ine even $ 0in$& $nd eAe(utor6 ;ud'%ent. "$sed on $&& t.ese (onsider$tions, p$rti(u&$r&6 t.e p$tent&6 i&&e'$& $nd erroneous (on(&usion t.$t t.e petitioners $re not entit&ed to *+E interest, 3e 0ind t.$t 3e $re dut6-)ound to re-eA$%ine $nd overturn t.e $ss$i&ed Reso&ution. -e s.$&& (o%p&ete&6 $nd ineA(us$)&6 )e re%iss in our dut6 $s de0enders o0 ;usti(e i0, 'iven t.e (.$n(e to %$:e t.e re(ti0i($tion, 3e s.$&& &et t.e opportunit6 p$ss. 2ttorne$s 3ees -e $re 0u&&6 $3$re t.$t t.e R!C .$s $3$rded t.e petitioners $ttorne6/s 0ees 3.en it 0iAed t.e ;ust (o%pens$tion due $nd de(reed t.$t interest o0 *+E s.ou&d )e p$id on t.e )$&$n(e outst$ndin' $0ter t.e t$:in' o0 t.e petitioners/ &$nd.o&din's too: p&$(e. !.e petitioners, .o3ever, .$ve not r$ised t.e $3$rd o0 $ttorne6/s 0ees $s $n issue in t.e present %otion 0or re(onsider$tion. 4or t.is re$son, 3e s.$&& not tou(. on t.is issue $t $&& in t.is Reso&ution. >!EREFORE$ pre%ises (onsidered, 3e (RANT t.e petitioners/ %otion 0or re(onsider$tion. !.e Court +n Banc/s Reso&ution d$ted e(e%)er 1, +,,2, $s 3e&& $s t.e !.ird ivision/s Reso&utions d$ted Apri& =,, +,,> $nd e(e%)er *2, +,,9, $re .ere)6 REIERSE& $nd SET ASI&E. !.e respondent L$nd "$n: o0 t.e P.i&ippines is .ere)6 OR&ERE& to p$6 petitioners Apo 4ruits Corpor$tion $nd Hi;o P&$nt$tion, In(. interest $t t.e r$te o0 *+E per $nnu% on t.e unp$id )$&$n(e o0 t.e ;ust (o%pens$tion, (o%puted 0ro% t.e d$te t.e Fovern%ent too: t.e properties on e(e%)er 2, *228, unti& t.e respondent L$nd "$n: o0 t.e P.i&ippines p$id on M$6 2, +,,> t.e )$&$n(e on t.e prin(ip$& $%ount. Un&ess t.e p$rties $'ree to $ s.orter p$6%ent period, p$6%ent s.$&& )e in %ont.&6 inst$&&%ents $t t.e r$te o0 P8,,,,,,,,,.,, per %ont. unti& t.e 3.o&e $%ount o3in', in(&udin' interest on t.e outst$ndin' )$&$n(e, is 0u&&6 p$id.
Costs $'$inst t.e respondent L$nd "$n: o0 t.e P.i&ippines. SO OR&ERE&% ARTURO &% BRION Asso(i$te Justi(e
CARPIO
Asso(i$te Justi(e
Pursu$nt to Se(tion *=, Arti(&e VIII o0 t.e Constitution, it is .ere)6 (erti0ied t.$t t.e (on(&usions in t.e $)ove Reso&ution .$d )een re$(.ed in (onsu&t$tion )e0ore t.e ($se 3$s $ssi'ned to t.e 3riter o0 t.e opinion o0 t.e Court.
RENATO C% CORONA
C.ie0 Justi(e
On 3e&&ness &e$ve. On &e$ve. On 3e&&ness &e$ve. B*C -.i&e t.e petitioners o3ned $ tot$& o0 *,1?1.>92* .e(t$res )$sed on t.e &$nd.o&din's st$ted in t.is Court/s 4e)ru$r6 8, +,,9 e(ision, t.e R!C, in its de(ision, 0iAed ;ust (o%pens$tion 0or *,=>>.8,+9 .e(t$res o0 &$nd. B+C Retired 0ro% t.e Court on e(e%)er ?, +,,2. B=C See -asi0ip v. Cit) of Pasi*, F.R. No. *=8=12, J$nu$r6 +=, +,,8, 192 SCRA =2*, (itin' ;isa)an Refinin* Co. v. Cam#s, 1, P.i&. ??,, ??>-??2 5*2*27. B1C See -anapat v. Co#rt of Appea s, F.R. Nos. **,19>, **8*98 $nd **812*-?,=, O(to)er *?, +,,9, ?=8 SCRA =+. B?C See Heirs of A $erto ,a*#itan v. Cit) of -anda #)on*, F.R. No. *=?,>9, M$r(. *1, +,,,, =+> SCRA *=9.